What do I do if I find an error on my taxes from more than 3 years ago?
Question:
Due to errors on my home business, I recently realized that I will need to amend 2003,2004, and delay filing 2005 until I get the books straight. It seems likely that 2000, 2001, and 2002 also have problems, but the older the return, the less likely I can figure it all out. I can't decide if I should mess with the older returns, or just let the IRS figure it out (if they ever do). I don't have a problem paying my penalties, I did screw up after all, but the hassle factor is incredible here, so perhaps I can let it go and just worry about the recent ones. If I get audited due to all my amended returns raising flags, the IRS can figure it out for me and I can pay then. Am I being cynical?
What are typical penalties and interest?
Answer:
First, in cases OTHER than fraud, the IRS has three years from receipt of your return to question the return. If you have no basis for reopening these old returns, DON'T. You'll just create significant problems for yourself.
Fix the '03, and '04 returns, and ask the IRS to waive the penalties and interest when you pay the tax owed. An accountant would be able to help you sort out your tax liability and help you negotiate with the IRS.
Good luck.
just keep quiet about it. You are setting yourself up for yearly audits if you open your mouth
i bet irs will fine out soon enough.
You need a good CPA NOW! If you've been doing the books yourself--it's too much for you to do too; If you've been using one--they need to be held accountable and pay the costs associated! Then you need to get a new CPA.
the irs will figure it out...go on with the corrected info for 2005...
if they audit you, then file amendments...
my opinion...
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